Japan Financial Services Agency: Derivatives Based on Overseas Cryptocurrency ETFs Are "Not Advisable"

2025-12-09 05:06:19

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According to TechFlow, on December 9, Yahoo reported that Japan’s Financial Services Agency (FSA) added a new question to the revised “Q&A on Financial Instruments Business, etc.”, explicitly stating for the first time that it is “not desirable” to offer derivatives based on overseas-formed cryptocurrency ETFs as underlying assets within Japan.

The FSA pointed out that the prices of overseas cryptocurrency ETFs are essentially linked to spot cryptocurrency prices, and contracts for difference (CFDs) based on such ETFs may fall under “cryptocurrency- or financial index-related derivative transactions” as defined by the Financial Instruments and Exchange Act. Considering that the establishment and sale of cryptocurrency ETFs are not yet permitted in Japan, offering such products while the investor protection framework remains insufficient “raises concerns regarding investor protection.”

As a result, IG Securities, which previously offered CFD products based on US-listed spot cryptocurrency ETFs such as BlackRock’s iShares Bitcoin Trust (IBIT), has announced the termination of related trading services.

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